Financial Settlement Service - Business Capabilities

Service Overview: The Financial Settlement Service manages billing, invoicing, cost allocation, chargebacks, and financial reconciliation for 3PL operations, providing accurate activity-based costing and automated settlement processing.

Architecture: Event-Driven Architecture with Financial Ledger Technology Stack: Spring Boot 3.2, PostgreSQL, Redis, Apache Kafka, ERP Integration Domain Model: Double-entry accounting with activity-based costing

L1: Automated Financial Operations

L1.1: Strategic Value

• Accuracy: 99.9% billing accuracy with automated validation
• Efficiency: 80% reduction in manual billing effort
• Transparency: Real-time cost visibility for customers
• Revenue Recovery: 95%+ chargeback recovery rate

L2: Core Capabilities

L2.1: Activity-Based Costing

• Real-time activity capture (storage, handling, labor, value-added services)
• Multi-dimensional cost allocation (customer, SKU, order, project)
• Rate card management with tiered pricing
• Cost rollup and aggregation

L2.2: Billing & Invoicing

• Automated invoice generation (daily, weekly, monthly)
• Contract-based pricing enforcement
• Minimum charge and discount calculations
• Multi-currency support

L2.3: Chargeback Management

• Automated chargeback calculation (damages, lost inventory, penalties)
• Dispute workflow and resolution
• Supporting documentation attachment
• Write-off and adjustment tracking

L2.4: Financial Reconciliation

• Activity vs. billing reconciliation
• ERP system integration
• Payment tracking and collections
• Variance analysis and reporting

Key Metrics

• Billing accuracy: 99.9%
• Invoice processing time: < 24 hours
• Days sales outstanding (DSO): < 30 days
• Dispute rate: < 2%

Performance Targets

• Cost calculation: < 500ms
• Invoice generation: < 30 seconds
• Reconciliation processing: < 5 minutes
• System availability: 99.95%